Slide 1: FY24 Results Update
BATHURST RESOURCES LIMITED FY24 RESULTS UPDATE August 2024 ASX:BRL
Slide 2: Disclosure
DISCLOSURE General information This document is authorised for release by the board of directors of Bathurst Resources Limited (“Bathurst”) on the 26 August 2024. Bathurst’s address is Level 12, 1 Willeston Street, Wellington 6011, New Zealand. General disclaimer This presentation contains forward-l
Slide 3: Corporate Summary
CORPORATE SUMMARY Corporate snapshot Share price Market capitalisation AUD $0.71 AUD $135.9 as at 23 August 2024 as at 23 August 2024 Shares on issue Enterprise value 191.4m AUD $15.8m Shareholder Demographic as at 23 August 2024 Market cap at 23 August less consolidated cash plus drawn debt at 23 A
Slide 4: FY24 Results on a Page
FY24 RESULTS ON A PAGE $315m $90.8m $38.5m Revenue NPAT EBITDA $141m 1.9mt 90% Consolidated % of Sales to Cash balance Sales tonnes Steelmaking Financial figures noted are 100 percent Bathurst and 65% BT Mining for FY24 as at 30 June 2024 All currency numbers are in New Zealand Dollars 4 APR – Avera
Slide 5: FY24 Consolidated Results
FY24 CONSOLIDATED RESULTS Financial Measures (NZD) FY 2024 FY 2023 Revenue 315.1m 389.0m EBITDA 90.8m 166.4m Profit after tax 38.5m 90.5m FINANCIAL SUMMARY Cash Healthy Strong positive balance Net assets forecast $141m NZD sheet per share consolidated earnings cash $0 debt $55m - $65m incl. restrict
Slide 6: FY24 Consolidated Cash Movements
FY24 CONSOLIDATED CASH MOVEMENTS (15.5) (51.5) 90.8 (10.1 (35.6) 163 141 FY23 EBITDA Other Tax Telkwa Mining Assets FY24 Consolidated & PPE Consolidated Cash Cash • Increased tax payments are due to the timing of provisional income tax payments – predominantly the July 2023 payment which relates to
Slide 7: Net Profit After Tax ($m)
NET PROFIT AFTER TAX ($m) • Reduction in EBITDA predominantly driven by a reduction in the benchmark price which revenue is derived, which has seen the average price received per tonne drop from $365 in FY23 to $297 in FY24. This was also coupled with operational delays in both the export and North
Slide 8: New Zealand's Largest Coal Producer
NEW ZEALAND’S LARGEST COAL PRODUCER Bathurst provides energy for the steel industry, agri-business sector, schools, hospitals and many other key players in the economy and society. Bathurst is also an exporter of high- quality coal for steel production primarily in Japan, South Korea, India, and Chi
Slide 9: Safety Journey
SAFETY JOURNEY • Reviewed our risk management standard to update critical control effectiveness definitions leading to revisions of site HSEC 5.5 broad brush risk assessments LTIFR • Implemented a company-wide learning management system including a compliance and effectiveness audit program of our o
Slide 10: Operations Overview (Export)
OPERATIONS OVERVIEW (Export) Export operations (65 percent equity share via BT Mining joint venture) Export Export 2024 2023 Measure Production (100% basis) Kt 963 1,042 Sales (100% basis) kt 1,106 1,197 Overburden (100% basis) Bcm 000 5,418 4,996 Revenue incl. realised hedging (65% equity share) $’
Slide 11: Operations Overview (Domestic)
OPERATIONS OVERVIEW (Domestic) Domestic operations (100 percent SID and 65 percent NID equity share via BT Mining) Export Export Measure 2024 2023 Production (100% basis) Kt 744 792 Sales (100% basis) kt 782 878 Overburden (100% basis) Bcm 000 9,477 6,161 Revenue (equity share basis) $’000 101,360 1
Slide 12: Looking Forward
LOOKING FORWARD BATHURST
Slide 13: Current and Future Operations
CURRENT AND FUTURE OPERATIONS COKING COAL PROJECTS • Tenas Project • Crown Mountain EXPORT COKING COAL FUTURE SALES ≈ 1Mt p.a. PRODUCTION≈ 3Mt p.a. • PRODUCTION ≈ 2Mt p.a. • DOMESTIC SALES ≈ 1Mt p.a. Approximate production and sales tonnes under management 15
Slide 14: FY25 Consolidated EBITDA Guidance $55M - $65M
FY25 CONSOLIDATED EBITDA GUIDANCE $55M - $65M #039;m 100 90 80 70 (21.3) (1.3) 60 (2.9) (0.3) 50 91 40 30 65 20 10 0 FY24 EBITDA Export North Island South Island Telkwa FY25E EBITDA (Unaudited) domestic incl. domestic incl. BT overheads BRL overheads • Export market earnings are forecast to reduce from
Slide 15: Export Market Outlook
EXPORT MARKET OUTLOOK 350 USD/tonne Monthly USD HCC pricing1 300 250 200 150 100 50 Actual Forward curve Guidance 0 • The fire at Anglo’s underground Grosvenor mine late June spiked the HCC price above US$250/t due to potential supply concerns. The price has tracked back down towards US$200/t with d
Slide 16: Tawhai Tunnel Update (KiwiRail)
TAWHAI TUNNEL UPDATE (KiwiRail) Reopening date to be advised from KiwiRail but expected by the end of 2024 based on earlier advice • Tunnel closure occurred 15th June • Trucking plan implemented immediately (3,500t/day) • Shipping plan for Stockton updated to maximise freight capacity • Sales volume
Slide 17: Fast Track Approvals Bill, NZ
FAST TRACK APPROVALS BILL, NZ National + ACT + NZ First coalition Government The bill proposes to establish a permanent fast-track approvals regime for projects of national and regional significance. Final decisions on fast-tracked projects will not sit with ministers, but with an expert panel. Stat
Slide 18: BT Mining (65%) Current Outlook
BT MINING (65%) CURRENT OUTLOOK Stockton (Export) Maramarua (North Island) Rotowaro (North Island) • Current permits 3 years • Current permits 3 years • Current permits 3 years • FY25E Sales – 1,081kt • FY25E Sales – 165kt • FY25E Sales – 427kt • FY25E Production – 940kt • FY25E Production – 164kt •
Slide 19: BT Mining Project Pipeline
BT MINING PROJECT PIPELINE Stockton (Export) Maramarua (North Rotowaro (North Island) Potential LOM to FY36 Island) Potential LOM to FY38 Potential LOM to FY32 Stockton Extension Project Rotowaro Extension Project Maramarua Extension Project 2.0 Fast Track Indicative Production Tonnes (Mt) (100% Bas
Slide 20: BT Mining Expansion Projects
BT MINING EXPANSION PROJECTS Export Projects Domestic Projects Life Extension of Export Hub Rotowaro Extension • Blending assessments have • Potential for 12 years at 400 kt pa identified key resources to extend • Exploration programme drilling Stockton Export coal operations underway and baseline s
Slide 21: Bathurst NZ (100%)
BATHURST NZ (100%) Current Operations Buller Plateau Project Takitimu (South Island) Buller Plateau (Export) • Current LOM 2 years • Expected first production FY27 • FY25E Sales – 220kt • Expected average production – 800kt • FY25E Production – 194kt • Buller coal to be blended with Stockton HCC • F
Slide 22: NZ Exports Stronger Due to Combination
NZ EXPORTS STRONGER DUE TO COMBINATION • The combination of BTM and BRL assets into the future creates a strong outlook for positive cashflow and the potential for BRL to have increased independent profit and cash generation after Takitimu closes. • The focus of the NZ production is for steelmaking
Slide 23: NZ Export Growth Projects - Stockton
NZ EXPORT GROWTH PROJECTS - STOCKTON 23
Slide 24: NZ Export Growth Projects - Denniston
NZ EXPORT GROWTH PROJECTS - DENNISTON 24
Slide 25: North Island Growth Projects
NORTH ISLAND GROWTH PROJECTS 25
Slide 26: Bathurst in BC, Canada
BATHURST IN BC, CANADA Bathurst also has an interest in two exciting Canadian steelmaking coal projects in British Columbia with a future combined annual total production of 3Mt. Future cashflows available for dividends. 1. Tenas Coking Coal Project in Telkwa (100%) 2. Crown Mountain Hard Coking Coa
Slide 27: British Columbia Projects
BRITISH COLUMBIA PROJECTS Tenas (100%) Crown Mountain (22%) ECONOMICS Pre-tax NPV8 USD $2701m. Pre-tax NPV10 USD $469m2. FOB USD 49.70/t cash cost (ex-port) before FOB USD 89.41/t cash cost interest & tax RESOURCE c1.0 Mtpa. 2.0 Mtpa. Mine life 22 years. Mine life 15 years. 22.0 Mt reserve, 36.5 Mt
Slide 28: Future Production Profile Subject to Fast Track & Canada Approvals
FUTURE PRODUCTION PROFILE SUBJECT TO FAST TRACK & CANADA APPROVALS 3.5 3.0 2.5 2.0 1.5 1.0 0.5 - FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 FY41 FY42 FY43 FY44 FY45 BRL - Domestic BT Mining - Domestic BRL - Export BT Mining - Export Tenas Crown Mountain Equity Ba
Slide 29: Capital Management
CAPITAL MANAGEMENT BATHURST
Slide 30: Capital Management - 3 Year Horizon
CAPITAL MANAGEMENT - 3 YEAR HORIZON BT Mining JV (65%) Bathurst NZ (100%) Bathurst BC, Canada Use of BT JV dividends for approval Use of BT JV dividend for approval Cash held NZD $200+ million expenditure expenditure Focus on NZ Export assets Domestic operation due for closure in Capital funding to
Slide 31: Capital Management Framework
CAPITAL MANAGEMENT FRAMEWORK • Bathurst 100% owned projects to create greater financial independence • Focused on developing and expanding steelmaking coal sales in the Pacific- Asian basin Strong Balance Sheet Investing in New Zealand Investing in Growth Returns to Shareholders Dividend policy will
Slide 32: Thank You
THANK YOU BATHURST RESOURCES LIMITED FY24 RESULTS UPDATE ASX: BRL
Slide 33: Coal Resources
COAL RESOURCES 2023 Measured resource 2022 Measured resource 2022 Indicated resource 2023 Indicated resource 2023 Inferred resource 2022 Inferred resource 2023 Total resource 2022 Total resource Bathurst ownership Change Change Change Change Area Escarpment (7) 100% 1.9 1.9 0.0 1.2 1.2 0.0 0.7 0.7 0
Slide 34: Coal Reserves
COAL RESERVES Coal reserves (ROM) tonnes Proved (Mt) Probable (Mt) Total (Mt) Bathurst ROM coal area ownership 2023 2022 Change 2023 2022 Change 2023 2022 Change WhareateaWest (D) 100% 0.0 0.0 0.0 4.7 4.7 0.0 4.7 4.7 0.0 Stockton (A, B, E, F& H) 65% 0.2 0.3 (0.1) 3.4 6.0 (2.6) 3.6 6.3 (2.7) Upper Wa